Agent Cushman & Wakefield is guiding a price of €22 million for the Opera Lane retail portfolio in Cork City.
Developed originally in 2009, the investment occupies a prime location just off St Patrick’s Street, the city’s principal thoroughfare. The units within the subject portfolio extend across a total area of 9,964sq m (107,251sq ft, are set out over lower-ground, ground, first and mezzanine levels, and have the benefit of 25m frontage to St Patrick’s Street.
The investment comes for sale with a strong tenant line-up that includes Next, Specsavers, H&M, Skechers, New Look, Therapie and Starbucks. Select+ and Tommy Hilfiger occupy the front two units, which have dual frontage on to St Patrick’s Street and Opera Lane. H&M and Next have both recently committed for the long term to the development while Victoria’s Secret and Bath & Body Works have recently agreed leases on two units. Both brands are engaged in fitting out their respective new premises and are expected to commence trading from there in the final quarter of this year.
Notable nearby occupiers include Dunnes Stores, Penneys, Brown Thomas, Flannels and H&M. Cork city has seen a number of new shop openings in the past 12 months. Flannels opened its second shop in Ireland, after Blanchardstown, at 113-115 St Patrick’s Street in the final quarter of 2023, while fashion retailer Penneys also plans to significantly expand its premises following its acquisition of the entire block where its shop is located. Eason, Dubray, Krispy Kreme, The North Face and Carrolls Irish Gifts have all opened new stores on St Patrick’s Street.
Should a sale of the Opera Lane portfolio proceed at the €22 million guide price, the new owner would be in line for a net initial yield of 9.10 per cent assuming standard purchaser costs of 9.96 per cent.
Karl Stewart of Cushman & Wakefield says: “This is an opportunity to secure a majority share of Cork city’s premier retail destination. This investment offers a strong rental return from a mix of international operators. That return will soon be boosted further with the opening of Victoria’s Secret and Bath & Body Works later this year. There is also scope for further rental return with turnover top-ups on a number of the stores.”
Further information on the sale is available from Karl Stewart and Peter O’Flynn of Cushman & Wakefield.
